Why the Transfer incomes are not included in the national income accounts?
Q. Why the Transfer incomes are not included in the national income accounts?
Answer: They do not represent payment for economic activity
Notes: Transfer payments made by the Government including subsidies, government aid, social security assistance such as health insurance payment and scholarship are not included in the national income. Because they do not represent any economic activity.

 

The above question is part of 35000+ General Studies MCQ Series Course on GKToday Android app.